TaxCE : A Framework for Automated Taxonomy Construction and Evaluation at Scale

Organizing unstructured feedback text into hierarchical taxonomy is a fundamental challenge in NLP, particularly in domains where feedback arrives at massive scale in varied forms such as reviews, transcripts, and surveys. Existing approaches either produce shallow hierarchies, neglect long-tail topics, or lack rigorous evaluation frameworks. We present TaxCE, a fully automated framework that constructs multi-level hierarchical taxonomies from raw text through progressive condensation of corpus content into actionable segments, deduplicated semantic units, and granular topics with definitions, which are then organized bottom-up into a hierarchy with corpus-groundedness. We also introduce three corpus-grounded evaluation metrics, Exclusivity, Exhaustivity, and Granularity (EEG), and integrate them into a metrics-in-the-loop iterative refinement mechanism that diagnoses deficiencies and applies targeted corrections until convergence. Extensive experiments demonstrate that TaxCE consistently outperforms existing baselines spanning classical topic models, neural methods, and LLM-based approaches, with average improvements of 11.8, 20.5, and 15.7 percentage points in exclusivity, exhaustivity, and granularity respectively over the strongest baseline. Human evaluation further confirms superior taxonomy quality, actionability, and navigability.

Building a Custom Taxonomy of AI Skills and Tasks from the Ground Up with Job Postings

Utilizing LLMs for automated taxonomy construction presents a clear opportunity for the comprehensive, yet efficient mapping of potentially complex domains. When contending with high volumes of rapidly growing corpora, however, it becomes unclear how to best leverage such data for optimal taxonomy construction. Taking the case of systematizing AI skills in the workplace, we use two large-scale job postings corpora to investigate key design decisions for the inclusion (or exclusion) of data points for taxonomy construction. We propose TaxonomyBuilder as a blueprint for our systematic study, with which we evaluate various configurations of custom, data-informed, and hierarchical taxonomies. We demonstrate that less data can provide more clarity: filtering inputs to TaxonomyBuilder provides better domain-specific coverage than offering unfiltered inputs to clustering and LLM-enhanced hierarchical taxonomy labeling tools.